After Israel's attack on Iran, the stock market is down today on 13th June. Sensex is trading at 80,800 level with a drop of 900 points or 1.10%. Nifty is also down by about 250 points or 1.10%. It is trading at 24,600 level.
All the 30 shares of Sensex are down. Banking, Oil & Gas, Auto and IT shares are down the most. After the crash of Air India plane yesterday, the shares of airline companies have also fallen. The share of the country's largest airline Indigo is down by 4%. SpiceJet is down by about 3%. All the shares of Tata Group, which operates Air India, are down.
Israel's attack on Iran is the biggest reason for the decline in the market. Whenever there is a war or tension between two big countries, investors get nervous and start withdrawing money from the stock market. This time Israel attacked Iran's nuclear bases and military sites, due to which there is a fear that the war in the Middle East may escalate.
Crude oil prices increased by more than 10%
After the attack, crude oil prices increased by more than 10%, because most of the world's oil comes from the Middle East. If the supply stops there, oil may become more expensive. This is a matter of even more concern for countries like India, because we have to buy most of the oil from abroad. This can increase inflation again.
Fall in Asian markets too
In Asian markets, Japan's Nikkei is trading 507 points (1.33%) down at 37,665 and Korea's Kospi is trading 31 points down at 2,888.
Hong Kong's Hang Seng index is trading 171 points (0.72%) down at 23,863. On the other hand, China's Shanghai Composite is trading 24 points down at 3,378. On June 12, America's Dow Jones closed 0.24% higher at 42,967. Nasdaq Composite closed 0.24% higher at 19,662 and S&P 500 closed 0.38% higher.
Prakash Kumar Pandey